Performance Measures at the individual activity level
Performance measures quantitatively tell us something important about our products, services, and the processes that produce them. They are a tool to help us understand, manage, and improve what our organizations do. Performance measures let us know: * How well we are doing * Provide a way to see if our strategy is working * If it provides a common language for communication * If it focuses on employees' attention on what matters most to success * If we are meeting our goals * If our customers are satisfied * If our processes are in statistical control * If and where improvements are necessary
Performance measures provide us with the information necessary to make intelligent decisions about what we do.
Primary goal of Performance measure is managing outcome, and come of its main purposes is to reduce or eliminate overall variation in the work product or process. The goal is to arrive at sound decisions about actions affecting the product or process and its output.
At the Individual Activity Level A. Below are examples of Activities that requires multiple tasks: 1. Desire by employer to have employees allocate their time and effort intelligently among various tasks or aspects of their jobs 2. Non financial measures play a central role in motivating employees to emphasize both quality and quantity 3. Goal measures quantity and quality aspects of employee’s job and to balance incentives for proper emphasis

B. Performance measures at the individual activity level for activities done in teams: 1. Team incentives encourage cooperation 2. Individual incentives to excel are possibly dampened by use of teams, harming overall performance 3. Challenge to manage team members who are not productive contributors to team’s success but who continue to share in team’s rewards
If the employer wants an employee to focus on multiple tasks of a job, then the employer must measure and compensate performance on each of those tasks
The question is how we measure performance on each of those tasks. Performance management is an integral part of the workplace as it provides a platform for supervisors and managers to measure employee performance and determine whether employees are meeting the company's expectations. The method of performance measurement varies according to the work environment, type of business and, to some extent, the employee's occupation.
Team-Based Compensation Teams are not just a passing and empty-management fad. They are here to stay. While teams may not be the answer to every problem within the company, they have become an essential element of the corporate environment.
It tackles about how companies use teams extensively for problem solving, how team achieve better results than individual employees acting alone and how companies must rewards individuals on a team based on team performance. Team compensation is a means of nurturing behavior that benefits the group. It encourages the individuals of the team to develop the skills necessary to express themselves within the context of cooperation, rather than of individual gain. Teams should be given a role in distributing recognition awards. Managers have to make sure that members of a team are working together, rather than competing against each other. The success of the team depends on two factors: communication and reward. That is, the members must want to share information, and it must be worth their while to work as a team. As a true team culture develops, power shifts from the coach or supervisor to the group. The team will be successful if the team roles and goals are fully clarified. All the team members and leaders must give full and consistent support for the team process.
A team-based compensation system can be an effective compensation plan for some companies. In order to be truly beneficial it requires: complete support for the team-based philosophy from all levels of management, a reward system that rewards team members for team-based performance, and compensation rewards in some form other than money.